Starboard Value has an $800 million stake in GoDaddy (GDDY, $83.03)
Activist investor Starboard Value LP disclosed an $800 million stake in web services group GoDaddy.
Starboard revealed this investment in a Securities and Exchange Commission filing. 6.5% stake was made in part because shares in the group were "undervalued" and therefore were an attractive investment opportunity.
GoDaddy reported fourth quarter earnings of 58 cents per share last month, beating analysts’ expectations. The company’s revenue rose +14.2% year-over-year to more than $960 million.
For the current fiscal year, GoDaddy expects overall revenues of around $3.765 billion
Aroon Indicator for GDDY shows an upward move is likely
GDDY's Aroon Indicator triggered a bullish signal on September 15, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 255 similar instances where the Aroon Indicator showed a similar pattern. In 199 of the 255 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 54 cases where GDDY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 70%.
GDDY moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for GDDY moved above the 200-day moving average on September 17, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +2.85% 3-day Advance, the price is estimated to grow further. Considering data from situations where GDDY advanced for three days, in 225 of 353 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
GDDY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 25, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GDDY as a result. In 57 of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 59%.
The Moving Average Convergence Divergence Histogram (MACD) for GDDY turned negative on September 22, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 26 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GDDY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. GDDY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 86 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 87 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GDDY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: GDDY's P/B Ratio (1666.667) is very high in comparison to the industry average of (18.522). P/E Ratio (13.924) is within average values for comparable stocks, (158.311). Projected Growth (PEG Ratio) (0.511) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.004) among similar stocks. P/S Ratio (2.627) is also within normal values, averaging (104.490).
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General Information
a provider of domain name registration and web hosting services
Industry ComputerCommunications
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